Certain industries have garnered more attention than others over the past few years.
The most interest has been in software, followed closely by healthcare, biotech, business products and services, consumer products and services, hardware and media and entertainment. Identifying the appropriate industry helps to garner the appropriate investors’ attention.
It is important to note that there is a significant benefit to be gained by having an angel investor with your industry expertise participate in the business.
Angel investors also look for companies or concepts with growth/export potential and are always evaluating the market’s needs. If you are in an industry that demonstrates tremendous growth potential, even if you are outside their preferred industry, you should attract interest.
You must demonstrate an understanding of the industry and clearly indicate how your product or service addresses a specific problem or need. The industry is broad so narrow it down to a specific targeted market and consumer base within the industry as this is a more realistic representation of the potential. Acknowledge that there is competition, but highlight and stress your unique value proposition and why customers will want to buy from you. If there are key competitors that you measure up against most favourably, list them and cite your advantage. Always be prepared to justify any facts or figures in your pitch because these are the areas angel investors will challenge.